Answered: Taxpayer incapacitated, need 2848 to handle problem

Drphibes · ‎12-27-2023

Filed a 2021 amended returns for a new client where the previous preparer placed several IRA distributions in the 2021 1041 Bypass Trust return (1st year of Bypass Trust) instead of client personal returns. E-filed amended both 1040 and 1041 returns August 2023 (personal not processed yet as IRS is at least 6mo behind on amended returns). Taxpayer has just received a CP2000 that the original personal return missed a rather large pension distribution. CP2000 is using the original filed numbers to start as amended return has yet to be processed.

Problem is, taxpayer is now incapacitated and her son has general POA over her affairs. What documentation do I need to provide with the 2848 of her son's POA to get authority to speak and how should the 2848 be signed. Thanks in advance everyone!

BobKamman · ‎12-28-2023

I don't think a PoA is required for the son to submit information. The CP-2000 unit needs to be told of the 1040-X, which they can probably access even if processing is not completed. (If there is a balance due, it's not taking six months.) Is there really a need to speak to IRS? I would write a letter to the reply address for the CP-2000, explaining the situation. Have the son sign it, add a sentence that "my mother is incapacitated so I am helping with her finances." What you are saying is, "We agree we owe even more money than what was reported on the 1040-X," right? I would also calculate the amount now owed considering both changes, and print out a 1040 with "Information Only -- Do Not Process" across the top of the first page, showing the amount the client expects to owe. For best results, pay the remaining balance due with your response.

There is some stuff in Pub 947 on what to do if a Form 2848 is not available, but that is just going to slow down the case.

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George4Tacks · ‎12-27-2023

Maybe @BobKamman can chime in.

Answers are easy. Questions are hard!

BobKamman · ‎12-28-2023

I don't think a PoA is required for the son to submit information. The CP-2000 unit needs to be told of the 1040-X, which they can probably access even if processing is not completed. (If there is a balance due, it's not taking six months.) Is there really a need to speak to IRS? I would write a letter to the reply address for the CP-2000, explaining the situation. Have the son sign it, add a sentence that "my mother is incapacitated so I am helping with her finances." What you are saying is, "We agree we owe even more money than what was reported on the 1040-X," right? I would also calculate the amount now owed considering both changes, and print out a 1040 with "Information Only -- Do Not Process" across the top of the first page, showing the amount the client expects to owe. For best results, pay the remaining balance due with your response.

There is some stuff in Pub 947 on what to do if a Form 2848 is not available, but that is just going to slow down the case.

Drphibes · ‎12-28-2023

Thanks Bob,

I'll go with that. Ya, if I have to submit his POA and such, it will take forever to process the 2848.

Taxpayer incapacitated, need 2848 to handle problem

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